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Bombay Dyeing gets relief from HC

Construction work on multi-crore projects on two Bombay Dyeing mill premises is likely to resume soon.

mumbai Updated: Apr 20, 2010 01:14 IST
HT Correspondent

Construction work on multi-crore projects on two Bombay Dyeing mill premises is likely to resume soon.

The Bombay High Court on Monday stayed the Brihanmumbai Municipal Corporation's (BMC) stop-work notice issued to Bombay Dyeing for its Wadala and Worli projects last month.

The notices had brought construction work on the two projects, spread over at least 2.30 lakh sq m, to a halt.

A stay order from the high court means the company can continue with construction work on its Spring Mills compound property at Wadala and the Textiles Mills compound, Worli.

The company is constructing a 38-storey residential-cum-commercial tower on the Spring Mills plot, measuring around 1,27,000 sq m. The Worli mill land will have retail space and a hotel spread over an area of 1,02,000 sq m.

The BMC had issued stop-work notices to Bombay Dyeing on March 26, 2010, following orders from the mill monitoring committee, constituted to supervise mill land development projects.

The company was asked to stop work after it failed to hand over a third of its open plot to the Maharashtra Housing and Area Development Authority (MHADA) for low-cost housing and another one-third to BMC for developing a recreational ground. This was apart from space allocated for housing mill workers.

Bombay Dyeing had challenged the notices in the high court contending that the mill monitoring committee, headed by retired Justice V.G. Chavan, had no authority to direct BMC to issue a stop-work notice.

The company's lawyer, Navroj Seervai, argued that similar notices were issued to them earlier, but withdrawn after they [mill monitoring committee] realised their mistake.

He contended that the state has clarified that the company was not obliged to handover plots to MHADA, BMC or mill workers until the balance floor space index available on the plot and 30 per cent of the open space was developed.

MHADA's counsel, G.W. Mattos, replied saying other mills handed over earmarked plots to MHADA as soon as their layout plans were approved.

He added that Bombay Dyeing's layout plans were approved in 2005.

This, however, failed to impress the division bench of Justice J N Patel and Justice A P Bhangale, which stayed the stop-work notices.

The court has scheduled the next hearing for May 6.